1st qtr status - san diego county, californiafy 2001-2002 1st quarter projected year-end results (in...

COUNTY OF SAN DIEGO

AGENDA ITEM

BOARD OF SUPERVISORS

GREG COX First District

DIANNE JACOB Second District

PAM SLATER Third District

RON ROBERTS Fourth District

BILL HORN Fifth District

Version 1.4

DATE: December 4, 2001

TO: Board of Supervisors

SUBJECT: FIRST QUARTER REPORT ON ESTIMATED RESULTS OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2002 (District: All)

SUMMARY: Overview This report summarizes my preliminary estimates of the County’s financial position as

measured by projected year-end fund balance by Agency/Group and by fund type. For the General Fund, the County’s primary operating fund, the first quarter projection of fund balance is $74.0 million, which is greater than the $70.8 million that was projected in last year’s first quarter report. It should be noted that of this amount, only $18.3 million is from savings in departmental operations while $55.7 million is from anticipated balances in Contingency and Management Reserves. The projected balance for all other funds combined is $7.3 million. These estimates do not take into account any potential ramifications for the County from the State’s current budget shortfall. The Governor has called an Extraordinary Session of the Legislature in January to consider over $2.2 billion in current year budget reductions and has ordered State agencies to prepare 15% budget reductions for Fiscal Year 2002-03. The County’s projected General Fund operating savings is small in relation to the total General Fund budget of $2.5 billion and anticipated reserve balances may not be adequate shock absorbers should the State decide to burden local governments with a greater share of State program costs as a partial solution to its budget problems. We are reviewing all State funded programs and will be bringing additional information or recommendations to your Board as necessary to protect critical services and local discretionary revenues.

Recommendation(s) CHIEF ADMINISTRATIVE OFFICER

File this report. Fiscal Impact There is no fiscal impact by this action. Business Impact Statement N/A


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Advisory Board Statement N/A BACKGROUND: The estimates are based on actual revenue and expenditure data through the first quarter (July – September) and staff’s best estimates of activity through the remainder of the year, but do not take into account any future actions by the State to correct an anticipated State budget deficit. As such, the estimates are preliminary and may change as we move through the year. The national, state and local economies have slowed considerably, so we’ve closely scrutinized the County’s general purpose revenues (e.g., property tax, vehicle license fees, sales tax, real property transfer tax, transient occupancy tax and other minor revenues). At this point we believe we’ve budgeted realistically and will realize the amounts we budgeted. Our two biggest sources of general purpose revenues are property taxes and vehicle license fees. Combined, they represent 84% of the total $568 million in general purpose revenues. Neither property taxes nor vehicle license fees are immediately impacted by a downturn in the economy. Sales tax, approximately 3% of total general purpose revenues, is more sensitive to a slowdown, but there is about a six month lag time between when a change in direction occurs and when we see the impact in our revenues. We use anecdotal and survey data regarding retail sales to identify trends and forecast future revenues. The real property transfer tax also makes up about 3% of the general purpose revenues. It is sensitive to changes in the volume and dollar value of property sales and there is an immediate impact on revenues when either increases or decreases in sales activity occurs. While there was a dip in real property transfer tax receipts in September, receipts for the first four months of this fiscal year overall are ahead of the corresponding period last year. Transient Occupancy Tax provides .6% of the general purpose revenues. While it is generally acknowledged that tourism is down, it is unknown as yet how the lodging facilities in the unincorporated area have fared due to the lag time between when the tax is collected and when it must be submitted to the County. We will have better information by January or February. There are, however, risks to those estimates. Of particular concern at this time is the health of the State’s economy and budget and the implications for the County’s Operational Plan. Reports from the State indicate that it may have as much as a $4.5 billion budget problem this fiscal year due to lagging revenues from a slumping economy. The problem grows to $12.4 billion for FiscalYear 2002-03. The State’s general fund budget for Fiscal Year 2001-02 is $78.8 billion and is heavily dependent on personal income tax, sales tax and bank and corporation taxes to finance services, all of which are extremely vulnerable in a faltering economy. If the forecasts are correct, State funded services, including assistance to local agencies such as the County, will suffer. State revenues make up 23.5% of the County’s overall program revenues, but in Health and Human Services, they make up 56.2% of the Agency’s total program revenues. State revenues are also an important source of funding for Public Safety and Land Use programs as well. On November 14, 2001 the State’s Legislative Analyst’s Office (LAO) issued a report on California’s fiscal outlook and the Governor released proposed reductions to the State’s Fiscal Year 2001-02 budget totaling over $2.2 billion in response to “the steepest decline in state income in more than half a century.” The proposed reductions are in addition to the previous


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directive he had given to State agencies which included a hiring freeze, a $150 million reduction in operating expenses for this fiscal year and the requirement to prepare plans for 15% budget reductions for Fiscal Year 2002-03 except for public safety and fire expenditures. The Governor has called a Special Session of the Legislature in January to act on the proposed reductions. The proposed cuts impact most State program areas including health and human services, education, parks, libraries, youth and adult corrections, environmental protection, resources, housing and community development, transportation and general government. The Governor’s press release indicated that “Critical public health and safety programs were spared from reductions, along with any program that may provide economic stimulus in the near term.” A proactive economic stimulus package by the State is being discussed and may focus on income related measures to the detriment of Sales taxes and Motor Vehicle taxes. The economy, the State’s budget situation, a potential economic stimulus package as well as the increased cost of bio-terrorism prevention cause us to take a proactive approach by reviewing all State funded programs and developing strategies to protect critical services and local revenues. Additional information will be brought to your Board as it becomes available along with any necessary recommendations. Schedule A summarizes the fund balance projections by Group. The notes to Schedule A explain variances from budget. Schedule B shows the projected General Fund fund balance by Group split between operating and reserve balances.

Respectfully submitted,

WALTER F. EKARD Chief Administrative Officer


AGENDA ITEM INFORMATION SHEET CONCURRENCE(S)

COUNTY COUNSEL REVIEW [X] Yes Written Disclosure per County Charter [] Yes [] No Section 1000.1 Required

GROUP/AGENCY FINANCE DIRECTOR [] Yes [X] N/A

CHIEF FINANCIAL OFFICER [X] Yes [] N/A Requires Four Votes [] Yes [X] No GROUP/AGENCY INFORMATION TECHNOLOGY DIRECTOR [] Yes [X] N/A

COUNTY TECHNOLOGY OFFICE [] Yes [X] N/A

DEPARTMENT OF HUMAN RESOURCES [] Yes [X] N/A

Other Concurrence(s): N/A

ORIGINATING DEPARTMENT: Auditor and Controller CONTACT PERSON(S): William J. Kelly, Chief Financial Officer Janel Pehau, Director, Office of Financial PlanningName Name (619) 531-5413 (619) 531-5175 Phone Phone (619) 531-5219 (619) 531-6261 Fax Fax A-5 A-5 Mail Station Mail Station [email protected] [email protected] E-mail E-mail AUTHORIZED REPRESENTATIVE: William J. Kelly, Chief Financial Officer


AGENDA ITEM INFORMATION SHEET (continued)

PREVIOUS RELEVANT BOARD ACTIONS: July 31, 2001 (23) BOARD POLICIES APPLICABLE: N/A BOARD POLICY STATEMENTS: N/A CONTRACT NUMBER(S): N/A

FY 2001-2002 1st QuarterProjected Year-end Results

(in thousands)

Schedule APage 1

COUNTY SUMMARY

Expenditure Variance

Revenue Variance

1st Quarter FY01-02

Projected Fund Balance

Favorable/ (Unfavorable)

General Fund Community Services 7,924$ (624)$ 7,300$ Finance & General Government 14,672 1,335 16,007 Health & Human Services 1,602 48 1,650 Land Use & Environment 12,140 (2,489) 9,651 Public Safety 24,653 748 25,402 Total Agency/Group 60,991 (982) 60,010 General Revenues - - - General County Expenses 14,000 - 14,000 Total General Fund 74,991$ (982)$ 74,009$

Special Revenue Funds Community Services 17,108 (17,108) - Finance & General Government 454 (187) 267 Health & Human Services - - - Land Use & Environment 11,707 (9,418) 2,288 Public Safety (214) 527 313 Other County - - - Total Special Revenue Funds 29,055$ (26,187)$ 2,867$

Internal Service Funds DepartmentsCommunity Services 20,690 (19,258) 1,432 Finance & General Government - - - Health & Human Services - - - Land Use & Environment - - - Public Safety Group - - - Other County - - - Total Internal Service Funds 20,690$ (19,258)$ 1,432$

Enterprise Fund Departments Land Use & Environment (160)$ 646$ 486$

Special District Funds Departments Health & Human Services - - - Land Use & Environment 1,378 838 2,216 Public Safety Group - - - Total Special District Funds 1,378$ 838$ 2,216$

Other County Funds Departments Community Svcs. Dept - Redevpment Agencies 323$ -$ 323$ LUEG - Debt. Svc. Local Boards 27 (27) - Total Other County Funds 350$ (27)$ 323$ Total County Projected Operating Balance 126,303$ (44,970)$ 81,333$

Numbers may not total due to rounding.


(in thousands)

Schedule APage 2

COMMUNITY SERVICES GROUP


Revenue Variance

1st Quarter FY01-02



General Fund DepartmentsAnimal Control 195$ 42$ 237$ Community Services Group Exec Office 6,282 123 6,405 Contribution to ISFs - - - General Services Funds - - - Housing & Community Development 694 (890) (196) Library Services - - - Registrar of Voters 753 101 854 Total General Fund 7,924 (624) 7,300

Special Revenue Funds DepartmentsLibrary Services 7 (7) - Housing & Community Development 17,102 (17,102) - Total Special Revenue Funds 17,108 (17,108) -

Internal Service Funds DepartmentsFacilities Management 11,573 (11,402) 171 Fleet Management 2,748 (1,615) 1,133 Purchasing & Contracting 6,372 (6,244) 127 Document Services (3) 3 - Total Internal Service Funds 20,690 (19,258) 1,432

Other County Funds DepartmentsRedevelopment Agency 323 - 323

Total Community Services Group 46,045$ (36,990)$ 9,055$



(in thousands)

Schedule APage 3

FINANCE & GENERAL GOVERNMENT GROUP


Revenue Variance

1st Quarter FY01-02



General Fund DepartmentsAssessor/Recorder/County Clerk 775$ 1,491$ 2,266$ Board of Supervisors - - - Board of Supervisors-General - - - CAC-Major Maintenance 211 - 211 CFO/Auditor & Controller 3,053 (342) 2,710 Chief Administrative Officer 640 - 640 County Technology Office 700 - 700 Civil Service Commission 38 - 38 Clerk of the Board of Supervisors 658 10 668 Contributions to Capital Outlay Fund 607 - 607 County Counsel 658 38 696 Finance & GG Exec Office 4,941 - 4,941 Human Resources 1,288 239 1,527 Treasurer/Tax Collector 1,104 (100) 1,004 Total General Fund 14,672 1,335 16,007

Special Revenue Funds Departments Media & Public Relations 454 (187) 267

Internal Service Funds DepartmentsChief Technology Office - - -

Total Finance & General Government Group 15,126$ 1,147$ 16,273$



(in thousands)

Schedule APage 4

HEALTH & HUMAN SERVICES AGENCY


Revenue Variance

1st Quarter FY01-02



General Fund ProgramsAgency Administration (1,367)$ 3,268$ 1,901$ Adult Mental Health 296 (759) (463) Aging & Independence Services 2,958 (3,370) (412) Children's Mental Health (2,306) 2,402 96 Children's Team - - Office of Public Health 1,920 (643) 1,277 Policy & Program Support 2,044 (532) 1,512 Proposition 10 (100) 101 1 Regional Operations (1,906) (358) (2,264) Strategy & Planning 64 (62) 2 Total General Fund 1,602 48 1,650

Special Revenue FundsSocial Services Realignment - - - Mental Health Realignment - - - Health Realignment - - - Total Special Revenue Funds - - -

Internal Service FundsDMI-Working Capital - - -

Special District Funds DepartmentsAmbulance Districts - - -

Other County Funds Departments - - -

Total Health & Human Services Agency 1,602$ 48$ 1,650$



(in thousands)

Schedule APage 5

LAND USE & ENVIRONMENT GROUP


Revenue Variance

1st Quarter FY01-02



General Fund DepartmentsAgriculture, Weights & Measures 11$ (287)$ (276) Environmental Health 2,091 (2,087) 4 Farm Advisor 16 8 24 Land Use & Environment Group Exec Office 9,103 (41) 9,062 Parks & Recreation (9) 128 119 Planning & Land Use 880 13 893 Public Works 49 (223) (174) Total General Fund 12,140 (2,489) 9,651

Special Revenue Funds DepartmentsAgriculture, Weights & Measures 30 (30) - Parks & Recreation 2,030 (1,042) 988 Public Works 9,647 (8,346) 1,301 Total Special Revenue Funds 11,707 (9,418) 2,288

Internal Service Funds Departments - - -

Enterprise Funds DepartmentsPublic Works (160) 646 486

Special District Funds DepartmentsAir Pollution Control District 190 350 540 Parks and Recreation 1,188 (103) 1,085 Public Works - 592 592 Total Special Districts Funds 1,378 838 2,216

Other County Funds DepartmentsDebt Service-Local Boards 27 (27) -

Total Land Use & Environment Group 25,092$ (10,451)$ 14,641$



(in thousands)

Schedule APage 6

PUBLIC SAFETY GROUP


Revenue Variance

1st Quarter FY01-02



General Fund Departments Alternate Public Defender 504$ (228)$ 276$ Child Support 2,458$ 176$ 2,634$ Contributions for Trial Courts - - - Defense Attorney Contract Admin. 200 (200) - District Attorney 2,223 1,448 3,671 Grand Jury 1 - 1 Law Enforcement Review Board - 9 9 Medical Examiner (111) 152 41 Office of Disaster Preparedness 38 115 153 Probation 6,990 (2,381) 4,609 Public Defender 653 614 1,267 Public Safety Executive Office 11,897 843 12,740 Sheriff (200) 200 -

Total General Fund 24,653 748 25,402

Special Revenue Funds DepartmentsDistrict Attorney - - - Probation - 313 313 Sheriff (214) 214 - Total Special Revenue Funds (214) 527 313

Internal Service Funds DepartmentsProbation - - - Sheriff - - - Total Internal Service Funds - - -

Special District Funds - - -

Total Group Projected Fund Balance 24,440$ 1,275$ 25,715$



(in thousands)

Schedule APage 7

GENERAL REVENUES & GENERAL COUNTY EXPENSES


Revenue Variance

1st Quarter FY01-02



General Fund General Revenues:All Current Property Taxes -$ -$ -$ All Other Taxes-Local - - - Licenses, Permits & Franchises - - - Fines, Forfeitures & Penalties - - - Revenue for Use of Money & Property - - - Intergovernmental Revenue - - -

Charges for Current Services - - - Miscellaneous Revenue - - - Total General Revenues - - -

General County Expenses Cash Borrowing Program - - - Community Enhancement - - - Contingency Reserve 11,000 - 11,000 Contributions to Library Fund - - - Community Projects & Services - - - Countywide Expenses 3,000 - 3,000 Total General County Expenses 14,000 - 14,000 Total General Fund 14,000 - 14,000

Special Revenue Funds DepartmentsCapital Program - - - Debt Service-Pension Obligation Bonds - - - Total Special Revenue Funds - - -

Internal Service Funds DepartmentsUnemployment & Workers Compensation - - - Public Liability - - - Total ISF Funds - - -

Total General Revenues & General County Expenses Operating Budget 14,000$ -$ 14,000$


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COUNTY OF SAN DIEGO NOTES TO SCHEDULE A

FY 2001 - 2002 1st QUARTER GENERAL NOTES Agency/Group Fund Balance Components Fund Balance consists of two components - Management Reserves and Operating Balance. Operating Balance is the excess of Revenues over Expenditures as a result of current fiscal year operations. Management Reserves are appropriations that are set aside at the Group or department level for unanticipated needs or planned future one-time expenses. Management Reserves The Agency/ Groups do not plan to expend all of their respective Management Reserves during this year and therefore expect that some amount will be available for use in future years. Projected Management Reserves at June 30, 2002 are shown in Schedule B. Projections of Agency/Group Operations Departments project changes to their operational plans based either on revised expectations or on actual revenues or expenditures to date. The significant (greater than $300,000) variances from plan are discussed below and categorized by funds. Most County activities are carried out within the General Fund. The General Fund Fund Balance is considered to be the primary “equity” cushion of the County, authorized to be drawn upon by specific Board action and according to Board priorities and policies. Projected fund balances in all other funds are restricted to uses that are consistent with the purposes of the individual funds. COMMUNITY SERVICES GROUP General Fund: Community Services Group Executive Office The net variance projected for the Community Services Executive Office is $6.4 million, $6.2 million of that a result of budgeted management reserves anticipated to be unspent. Registrar of Voters A net positive variance of $0.9 million is projected, chiefly due to $.8 million of budgeted management reserves foreseen to be unspent.

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Internal Service Funds: Department of General Services - Fleet Management A net positive variance of $1.1 million is projected as the result of lower than anticipated current year depreciation costs and delays in vehicle acquisitions and deliveries. Other County Funds: San Diego County Redevelopment Agency The net positive variance of $0.3 million consists of: $0.16 million for prior year excess tax increment payments to the Grossmont and Cajon Valley School Districts, pursuant to a Settlement Agreement signed in 1989, and a pending litigation settlement of $0.15 million for the Marshall Avenue Improvements Project. FINANCE & GENERAL GOVERNMENT GROUP General Fund: Assessor/Recorder/County Clerk A projected net positive variance of $2.3 million is based on Services & Supplies savings of $.7 million due primarily to delays in revenue offset projects and increased revenues of $1.5 million. The net revenue increase consists of increased recording fees of $2.1 million due to refinancing of home mortgages and a decrease in other revenues of ($.6) million where revenues are directly tied to expenditures. CFO/Auditor & Controller A projected net positive variance of $2.7 million is the result of projected staff savings of $1.2 million due to recruitment difficulties, reduced revenues of ($.3) million and unspent management reserves of $1.8 million. Chief Administrative Office A projected net positive variance of $.6 million is the result of staff savings of $.4 million and unspent management reserves of $.2 million. County Technology Office A projected net positive variance of $.7 million is the result of projected staff savings of $.2 million and unspent management reserves of $.5 million. Clerk of the Board of Supervisors A projected net positive variance of $.7 million is the result of Services & Supplies savings of $.1 million and unspent management reserves of $.6 million.

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Contributions to Capital Outlay Fund A projected net positive variance of $.6 million is the result of lease payment savings. County Counsel A projected net positive variance of $.7 million is the result of Service and Supplies savings of $.2 million and unspent management reserves of $.5 million. Finance & General Government Group – Executive Office A projected net positive variance of $4.9 million is the estimated year-end Group management reserves balance. Human Resources A projected net positive variance of $1.5 million is the result of increased revenue of $.2 million from work performed for non-general fund County operations and unspent management reserves of $1.3 million. Treasurer-Tax Collector A projected net positive variance of $1 million is the result of staff savings of $.3 million, Services and Supplies savings of $.3 million due to delays in IT acquisitions, reduced revenue of ($.1) million and unspent management reserves of $.5 million. HEALTH & HUMAN SERVICES AGENCY General Fund: Agency Administration The Agency Administration consists of the following: Agency Executive Office, Financial Services, Contract Support, Information Technology and Human Resources. A favorable variance of $1.9 million is projected due to management reserves of $2.3 million offset by an estimated over expenditures of $.4 million due to Quality First payouts and negotiated salary increases. Appropriations for these salary costs will be adjusted in the first quarter status report based on realignment, program revenues, and available fund balance and management reserves. Adult Mental Health An unfavorable variance of $.5 million is being projected. Projected increased costs for medications total $1.4 million and revenue will be below budget by $.8 million due to hiring delays. These results are offset by salary savings of $1.2 million due to hiring delays and savings in Fixed Assets and other Services and Supplies of $.5 million. Cost containment measures are being developed, but have not yet been finalized.

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Aging and Independence Services An unfavorable variance of $0.4 million is estimated due to as yet unappropriated Quality First payouts and unfunded salary negotiations. These will be adjusted in the Agency’s first quarter status report. Office of Public Health A favorable variance of $1.3 million is projected due to savings in expenditures from delays in starting contracts and attendant staff hiring. This savings is partially offset by $.6 million in lower revenue. Policy and Program Support A favorable variance of $1.5 million dollars is projected due to prior year State and Federal revenues being received this fiscal year. Expenditures are projected at being $2.0 million under budget based on prior year and first quarter trends. These expenditure savings will result in a corresponding reduction in revenues. Regional Operations An unfavorable variance of $2.3 million is being projected. Over expenditures are estimated due to increased costs for Foster Care and Aid to Adoptive Parents and unappropriated Quality First Payouts and salary negotiation increases. Caseload and payment costs for Foster care and Aid to Adoptive Parents will be monitored and expenditure and revenue allocations will be adjusted in the 2nd quarter status letter if needed. The Agency is monitoring all State allocation letters and realignment projections and will be adjusting the Operational Plan accordingly. Appropriations for Quality First Payouts and unfunded salary negotiations will be adjusted in the Agency’s first quarter status report. LAND USE AND ENVIRONMENT GROUP General Fund: Land Use Group – Executive Office A net positive $9.0 million is projected, largely due to the $8.7 million Management Reserve expected by year-end for the Land Use and Environment Group. The availability of these funds is necessary, as a portion has been committed to fund Board initiatives in the coming fiscal year. Planning and Land Use A net positive $.9 million is projected by year-end. Savings in Salaries and Benefits of $.4 million are due to vacancies as a result of recruitment and retention issues in the Planner and Environmental Management Specialist classifications and unfilled positions for the Stormwater Program. $.5 million savings in Services and Supplies are as a result of the aforementioned reduced staffing and for Multiple Species Conservation Project consultant contracts.

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Special Revenue Funds: Parks and Recreation A net positive $1.0 million is projected by year-end for the 25 PLDO’s as result of $2.0 million in expenditure savings due to the department’s practice of budgeting all resources available, regardless of the spending plan. This amount is offset by less than budgeted revenues of $1.0 million due to the anticipated slowdown in new housing construction. Public Works A net positive $1.3 million is projected due to under expenditures for various projects ($9.6 million) – not all right of way acquisitions will be accomplished by year-end, and there will be related savings in consultant contracts. A corresponding $8.3 million reduction in State and Federal reimbursement for these projects is anticipated. Enterprise Funds: Public Works A net positive $.5 million is projected as a result of the aggregate outcomes in the following funds: ��Wastewater Enterprise Fund

Savings of $.3 million in Salaries and Benefits are projected. Coupled with a projected over-realized revenue of $38,500, net positive fund balance of $.37 million is anticipated.

��Airport Enterprise Fund

A positive balance of $.1 million is projected. Overages in Salaries and Benefits and Fixed Assets are mitigated by the use of Fund Balance for net expenditure savings of $51 thousand. This estimate is enhanced by the projected over realization of revenue from Rents and Concessions and Internal Service Funds.

��Transit Enterprise Fund

Expenditure savings of $.7 million in Services and Supplies is anticipated to be offset by over-expenditures in Capital due to purchases of buses by $.5 million.

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Special Districts: Air Pollution Control District A net favorable $.5 million is projected. Services and Supplies are anticipated to be $.2 million less than budget due to reductions in prior year encumbrances and less consultant services. Over-realization of revenues of $.3 million is a result of EPA grant funds being higher than budgeted and as a result of the ARB’s recommendations regarding enforcement of fines and penalties. Parks and Recreation A net favorable $1.1 million is projected by year-end. Savings in expenditures of $1.2 million are as a result of the department's practice of budgeting all resources available, regardless of the spending plan. The projected $.1 million revenue decrease is a result of less than budgeted receipts for Secured Taxes and for Service to Property Owners). Public Works A net positive $.6 million is projected, all due to greater than budgeted revenues in Sanitation Service Connection fees and Sanitation District revenue from other governments PUBLIC SAFETY GROUP Department of Child Support Services The projected fund balance is $2.6 million, primarily due to recovered cost revenue being overrealized by $1.4 million, and federal Child support program revenue being overrealized by $.7 million due to reimbursable overhead costs stemming from delays in child support transition from the DA’s office. An additional $.5 million underexpenditure results from budgeted expenses originally covered by recovered cost revenue that were later approved for State funding. Salaries and Benefits are estimated to be $2.4 million under budget due to salary savings and transitioning workers from temporary to permanent staff. This under expenditure is reflected in State in Federal revenue estimates being projected below budget. District Attorney The projected fund balance is $3.7 million, comprised of planned unexpended Management Reserves of $2.4 million and operational savings of $1.3 million. The operational savings is comprised of salary savings of $2.1 million due to positions being vacant, staff turnover, and approximately $.5 million due to the Deputy District Attorney Association not approving a labor contract. Services and Supplies are projected to exceed budget by $1.6 million due to routine costs and department priorities, including HOJ improvements and security, courtroom

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automation, secure employee parking, JURIS planning project, Literacy project and a DA wide area network. Probation The projected fund balance is $4.6 million. There is a projected under expenditure of $1.7 million in Salaries and Benefits, primarily due to positions being frozen from the closure of Camp West Fork. Services and Supplies are estimated to be $.3 over budget due to increased Information Technology costs. Other Charges are estimated to be $5.6 million under budget due to a reduction in out of home placements, which produces a corresponding decrease in Federal and State Foster Care revenue reimbursement. An anticipated under-realization of $2.4 million in revenues is due to $4.1 million savings from the aforementioned Foster Care program and the over-realization of $1.7 million in revenue from the Board of Corrections for deferred maintenance projects. Public Defender The Public Defender is projecting a positive net variance of $1.3 million. A positive variance of $.5 million in Salary and Benefits is the result of the Public Defenders Association labor agreement not being settled and staffing vacancies, and a $.7 million revenue variance is projected as a result of the appropriation of Public Safety Group Fund Balance to meet additional operational needs. Executive Office A favorable variance of $12.7 million is projected, chiefly due to unexpended Management Reserves. Salaries and Benefits are foreseen to be $.3 over budget primarily due to Student Workers being hired in the Group's Diversity Training Program. Services and Supplies are projected to be $.5 million over budget due to higher than anticipated Information Technology costs. Both of these items will be corrected with an appropriation of revenue to offset student worker costs and fund balance being appropriated to offset increased IT costs. Sheriff The projected fund balance is zero resulting from anticipated increases in appropriations from 1) Quality First expenditures based on FY 00-01 fund balance, and 2) the impact of the negotiated pay raises in the SEIU contract. Services and Supplies are projected to have a positive variance of $.2 million based on increased appropriations as a result of increased IT costs. Other Charges reflects a $.4 m projected cost overage for the Inmate Medical Program resulting from four major medical cost cases. Revenues reflect a $.4 m reduction in Court Service Bureau estimates due to changes in State Trial Court Funding guidelines, and an increase in budgeted fund balance of $.6 m to offset the projected reduction in Trial Court revenue and anticipated negative variance in Other Charges.

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Special Revenue Funds: Probation Inmate Welfare The Fund is projecting a positive net variance of .3 million. This is the chiefly due to the anticipated appropriation of additional fund balance to meet operational needs and the over-realization of revenue from the Federal Asset Seizure Program. GENERAL REVENUES & GENERAL COUNTY EXPENSES Fund balance is estimated to be $14.0 million. The Contingency Reserve is expected to be held at $11.0 million through year-end. Another $3.0 million in Services and Supplies is expected to remain unspent as this amount has been set aside in the budget to add to the General Reserve at year-end based on the favorable financial condition of the County.

Schedule BCounty of San Diego

FY 2001-2002 1st QuarterProjected Reserves and Operating Balances at June 30, 2002

(in thounsands)

Category

Projected Management &

Contingency Reserves

Projected Operating Balances

1st Quarter FY01-02



General FundCommunity Services 7,089$ 211$ 7,300$ Finance & General Government 10,444 5,563 16,007 Health and Human Services 3,014 (1,364) 1,650 Land Use and Environment 9,021 630 9,651 Public Safety 15,174 10,228 25,402 Agency/Group Totals 44,742$ 15,268$ 60,010$ General Revenues - - General County Expenses - 3,000 3,000 Contingency Reserve 11,000 - 11,000 Total Gen'l. Revs & Other Gen'l. Fund 11,000$ 3,000$ 14,000$

Total General Fund 55,742$ 18,268$ 74,009$



1st qtr status - san diego county, californiafy 2001-2002 1st quarter projected year-end results (in...

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